News Release

Tom Adams announces plan to transition from President and Chief
Executive Officer to Chairman of Rosetta Stone's Board of Directors

Search has commenced for Adams' successor as President and Chief
Executive Officer

ARLINGTON, Va., Oct 13, 2011 (BUSINESS WIRE) --

Rosetta Stone Inc. (NYSE:RST), a leading provider of technology-based
language-learning solutions, today announced that Tom Adams has
proposed, and the Board of Directors has accepted, a plan to transition
from his position as President and Chief Executive Officer of Rosetta
Stone to Chairman of the Board of Directors, upon identifying a suitable
successor. Tom Adams plans to remain in his position until a new CEO is
named, at which time the Board of Directors plans to elect Adams as
non-executive Chairman.

"While I am very proud of Rosetta Stone's tremendous accomplishments
over the last nine years I believe that even greater opportunities lie
ahead as we endeavor to extend our leadership in international markets,
and as the company evolves from the CD-ROM based desktop software model
to digital services, combining effective self-study with live online
conversational coaching in a multi-device platform," said Tom Adams,
president and chief executive officer of Rosetta Stone. "I look forward
to assisting with the search for my successor and to the further
development and execution of the Company's strategy as Chairman of the
Board. While we conduct the search to find my successor, my management
team and I will continue to work hard to make progress against our
strategic objectives."

"We're pleased that Tom will succeed me as Chairman, building on his
extraordinary contributions to Rosetta Stone," said Laurence Franklin,
outgoing Chairman of the Board of Directors of Rosetta Stone. "During
Tom's tenure as CEO, Rosetta Stone's revenue grew more than
twenty-five-fold from $10 million in 2002 to $259 million in 2010.
During this period, Rosetta Stone firmly established itself as the
global innovation leader in language learning by leveraging technology
to deliver better learner results. We look forward to Tom's continued
guidance and direction as Chairman of our Board of Directors after his
successor is named, and I look forward to continuing to work with Tom as
a fellow board member."

Rosetta Stone has engaged Champion Scott Partners, an executive search
firm, to actively conduct a search for a new CEO.

About Rosetta Stone

Rosetta Stone Inc. is changing the way the world learns languages.
Rosetta Stone provides interactive solutions that are acclaimed for the
speed and power to unlock the natural language-learning ability in
everyone. Available in more than 30 languages, Rosetta Stone
language-learning solutions are used by schools, organizations and
millions of individuals in over 150 countries throughout the world. The
company was founded in 1992 on the core beliefs that learning a language
should be natural and instinctive and that interactive technology can
replicate and activate the immersion method powerfully for learners of
any age. The company is based in Arlington, Va., with international
offices in the Brazil, Germany, Korea, Japan and the United Kingdom. For
more information, visit www.RosettaStone.com.

"Rosetta Stone," "TOTALe," "ReFLEX" and other names used herein are
registered trademarks or trademarks of Rosetta Stone Ltd. in the United
States and other countries.

Cautionary Statement Regarding Forward-Looking Statements

Certain statements in this press release are forward-looking statements,
including statements concerning our identification of a successor CEO,
Mr. Adams' election to serve as non-executive Chairman following the
naming of a new CEO, our future opportunities in international markets,
the evolution of our products and services, and our expected future
business and performance. These forward-looking statements may be
identified by words such as "believe," "endeavor," "continue," "evolve,"
"plan," and "will." These forward-looking statements reflect the
company's current views with respect to future events and are subject to
certain risks, uncertainties, and assumptions. A number of important
factors could cause actual results or events to differ materially from
those indicated by such forward-looking statements, including
difficulties in identifying and designating a suitable successor to Mr.
Adams to serve as president and CEO; demand for language learning
software; the advantages of our products, technology, brand and business
model as compared to others; our ability to maintain effective internal
controls or to remediate material weaknesses; our cash needs and
expectations regarding cash flow from operations; our product
development plans; the impact of our Version 4 TOTALe and ReFLEX
products on our industry; the appeal and efficacy of Version 4 TOTALe
and ReFLEX; our expectations regarding capturing lifetime value and a
broader range of market segments through such offerings; our plans
regarding expansion of our marketing initiatives and sales force; our
international expansion plans; our plans regarding our kiosks and retail
relationships; the impact of any revisions to our pricing strategy; our
ability to manage and grow our business and execute our business
strategy; our financial performance; our actions to stabilize our
business in the U.S. consumer market including realigning our cost
structure and revitalizing our go-to-market strategy; adverse trends in
general economic conditions and the other factors described more fully
in the company's filings with the U.S. Securities and Exchange
Commission (SEC), including the company's annual report on Form 10-K for
the year period ended December 31, 2010, which is on file with the SEC.
The company assumes no obligation to update the information in this
communication, except as otherwise required by law. Readers are
cautioned not to place undue reliance on these forward-looking
statements that speak only as of the date hereof.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding Rosetta Stone PR's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for the most recently ended fiscal year.